The General Electric (GE) logo is shown on a microwave oven at Best Buy in Mountain View, Calif. GE reported a 16 percent rise in profit, helped by cost cuts and improvements at its beleaguered financing business.

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Boston

General Electric Co (GE.N) reported a 16.1 percent rise in profit, topping analysts' expectations and ending a streak of nine quarters of decline, on strong demand for healthcare and oil and gas equipment. The largest U.S. conglomerate said on Friday orders, which indicate future sales, rose 8 percent, and Chief Executive Jeff Immelt reiterated plans to raise the dividend in 2011.

GE shares rose 1 percent in premarket trading, though investors noted that revenue came in lower than they had expected.

"GE's economic environment continues to improve," said Immelt, who has been driving the company to scale back its hefty finance unit after that business proved to be its weak spot during the recent recession. "We expect to grow earnings and dividends in 2011 and beyond."

"It's a nice beat on the bottom line on EPS, but the revenue number is still light," said Peter Sorrentino, senior vice president and portfolio manager at Huntington Asset Advisors in Cincinnati, which holds GE shares. "Cash flow was surprisingly stronger than I expected. That's a material improvement. It looks like it's still a cost-cutting story."

The company is in the process of pruning its finance arm -- which Immelt says he allowed to grow "too big" -- in order to focus on financing equipment purchases, commercial lending and investing in real estate. Continuing that trend, on Thursday GE reached a $1.9 billion deal to sell its controlling stake in Latin American bank BAC-Credomatic to Colombia's Grupo Aval GAA.CN.